'Net Features : 111309

Exploring Loyalty Programs and Their Many Benefits

Mike Phillips — Fri, 13 Nov 2009 21:30:00 GMT

Loyalty programs can be a highly effective way to build brand loyalty and encourage new brand advocates. From periodic discounts or rewards for promoting the brand, membership certainly has its benefits. And no one benefits more than the brand. But there is much more that a brand can do with loyalty programs and much more to be gained - including increasing time-on-site, page views, ad impressions and click-throughs, and direct sales.

Let's take a look at one such loyalty program, offered by Chicago radio station WXRT, at 93.1 FM and www.wxrt.com. Their program is called the VIP Lounge and features several outstanding uses of brand loyalty.

Focusing on the User

Below is an image of the home page after logging-in to the VIP Lounge. We first see the brand, clear and present, with the identifiable moniker of "93 XRT" and call-sign diamond in the logo. The page is immediately inviting as a place to relax and spend some time exploring - a nice touch with the couch and a personalized invitation with the welcoming video. Of course, the VIP's name is prominent, as is his or her status and balance of VIP points. Altogether, the user is made to feel very welcome and encouraged to explore the brand (more on that later).

VIP points are earned by interacting with the website and the radio station offline. The points can then be spent on promotional items - such as tickets to concerts or passes to events. For example, one entry for a free ticket to a local concert might "cost" 10 points. It's then up to the user to decide how many points to spend - the more points spent, the more entries and better chance of success to win the tickets. Instead of simply shipping a product when the user reaches a certain threshold, the user is given control of their loyalty. This gives them a reason to get excited and, more important, to come back and keep trying. Users can also spend their points on merchandise. Options.

Let's now look at one way for users to earn points. To the right is an image of blues legend BB King, who will be making an appearance at Chicago's House of Blues, a WXRT-sponsored event. On that photo is a call-to-action - 250 VIP points using the keyword "BB." By entering this code in the "Spend VIP Points" section at the VIP Lounge, the user earns 250 points that they can use to enter to win tickets to any number of WXRT concerts including BB King. Synergy.

Focusing on the Brand

Sure, we want our users to benefit from loyalty programs. More important, however, our brands and our bottom line needs to benefit. Going back to the VIP Lounge home page, we can see several important branding elements and opportunities.

The most striking element of the page is designed first and foremost for brand interaction - the red buttons. There are links to earning and spending VIP points, listening to the radio station live (cross-channel promotion), 'giveaways,' 'photos,' and the ever-important 'refer friend.' The referral is accomplished by an e-mail invite and rewarded by additional VIP points for each friend referred, and 10 percent of VIP points earned by those friends within the first seven days of their signup. In other words, the user becomes a loyalty program affiliate. Brilliant. There is also a prominent 'contact' button. After all, what good is being a VIP if you don't get personalized VIP treatment?

Also highly visible are a few direct revenue generators; in the casino ad, the "Big Holiday Concert" ad and another casino ad at the very top of the page (not pictured).

One of the most imporant features of this page and the VIP Lounge in general is the benefit to the website's statistics, which become highly relevant to prospective advertisers. By the time you reach the VIP Lounge you've already created a few page views. The multiple interactions available also encourage more page views and increased time-on-site, including photos and the video welcome message. Now, back to the BB King photo - this was the last of at least two dozen photos in the gallery. The gallery is promoted as offering 250 VIP points by looking for the keyword. So, the user must click through many other photos before reaching the last one, containing the keyword "BB." That's a tremendous way to get people to spend more time on the page, while giving something in return and even entertaining them.

Of course, a successful loyalty program requires promotion and maintenance. WXRT has more than 12,000 Facebook Fans and over 3,300 Twitter followers. The BB King promotion (along with all the others) are promoted heavily through both channels. Viral Marketing.

It should be noted that WXRT is no stranger to brand loyalty. The purveyors of "Chicago's Finest Rock" have been building a community and a following of Chicago music fans since about 1972. They have enjoyed loyal fans well before the Web had any impact on business, or even existed. But these elements are a fine example of brand loyalty objectives, benefits, and strategies that any business can employ.

Rollin' VIP @ Affiliate Convention

Pete Prestipino — Fri, 13 Nov 2009 21:05:00 GMT

If you're an affiliate marketer Website Magazine has got a special offer for you this afternoon. Affiliate network UniqueLeads wants you to roll like a VIP at the upcoming Affiliate Convention.

Just sign up at www.UniqueLeads.com and you could win a round trip ticket to LA for AffiliateConvention.com, being held in Los Angeles, Dec. 3-4 2009; including limo service from LAX to the hotel, Hotel Accommodations for three nights and some killer surprises!

Affiliate Convention is FREE to attend for all working affiliates. You'll learn and network with the most respected names in the online marketing world so head over to the UniqueLeads.com affiliate network today because the contest ends Midnight on November 15th!

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Affiliate Benchmarks; Dark Days for Newbie Affiliates

Pete Prestipino — Fri, 13 Nov 2009 16:23:00 GMT

NETexponent's research division AffiliateBenchmarks released its annual report on the affiliate industry today and if you're new to the affiliate marketing industry it looks like you're not living up to your true potential.

The survey revealed that while many newcomers are getting into the game on the side hoping to make supplemental income, nearly half of the survey respondents reported that less than five percent or none of their links generated a sale in the month before completing the survey. It's important to note however that nearly half (49 percent) of survey respondents joined the industry in the past two years, and over half consider affiliate advertising to be a part-time job or hobby.

Perhaps the most interesting insight from the report is that many affiliates are overlooking or are unaware of technolies and strategies that are driving success and revenue for more experienced affiliates. For example, although there is a clear correlation between the reported number of keywords purchased and the reported monthly revenue of the affiliate, only 36 percent of survey respondents utilize PPC search. And it doesn't stop with PPC:

- The use of flash ads and video widgets performed excellent or well for those who claimed to employ these tactics, however, the large majority of survey respondents did not leverage these formats.

- Nearly 40 percent (38.5 percent) of survey respondents do not read any blogs for up-to-date information and helpful tips.

- Nearly half (46.9 percent) of survey respondents do not collect data on their websites' audiences; 14.4 percent of those did not even know where this information comes from.

"The affiliate industry is growing and evolving rapidly, and it is essential for new affiliates joining the game to quickly come up to speed on the latest trends and strategies if they want to compete in this lively marketplace," said Peter Figueredo, CEO of NETexponent. "The AffiliateBenchmarks report can be a great getting-started guide for these newcomers as well as a tool to help seasoned marketers improve results."

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Forrester on IT Spending

Pete Prestipino — Fri, 13 Nov 2009 15:21:00 GMT

According to the latest Enterprise IT Services Survey by Forrester Research, Inc. (Nasdaq: FORR), IT contractors and consultants will see the deepest decreases in spending, while systems integration and outsourcing services will have the most increases.

Unlike during the last recession from 2001 to 2002, when outsourcing and offshoring experienced growth from firms seeking to reduce internal IT costs, the picture for IT services is much more mixed in terms of spending plans. 30 percent of executives surveyed said they plan to increase spending on systems integration and project work, 26 percent plan increases in applications outsourcing, and 25 percent expect to increase spending on infrastructure outsourcing. However, 41 percent of executives expect to reduce spending on contractors, and 34 percent foresee lower spending on IT consulting.

“As the global economic downturn puts pressure on IT services spending, firms are taking a range of actions to deal with the cuts,” said John McCarthy, vice president and principal analyst at Forrester. “The pressure to reduce IT spending is going to continue well into 2010. The data shows no quick turnaround — it’s going to be a tough year for services firms as clients increasingly ask them to justify the ROI for IT projects and provide more value for a lower price.”

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